Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
As COVID-19 continues to keep Canada under strict restrictions and partial lockdowns, many businesses have been struggling to keep afloat. In an effort to help these businesses the Government of Canada introduced the Canada Emergency Business Account (CEBA). Through it, businesses were able to access interest-free loans up to $40,000. Since it’s launch in April of 2020, more than 795,00 businesses have been approved for the CEBA loan, which amounts to almost $31.80 billion in funding.
The CEBA loans were meant to help businesses affected by COVID-19, with non-deferrable expenses such as rent, utilities, insurance, payroll, and property taxes. However, due to the prolonged presence and restrictions of COVID-19, businesses are still struggling to survive. As a result, the Government of Canada has increased the CEBA loan amount by another $20,000. This means businesses can now access up to $60,000 of interest-free funds. Those eligible may apply for the CEBA loan until June 30, 2021.
The requirements to qualify for the CEBA loan remain unchanged. In order to be eligible, businesses must have:
However, if your business falls under any of these categories, you will not be able to take advantage of the CEBA.
Learn more about COVID-19 government assistance for Canadian businesses.
Businesses who’ve previously received the CEBA loan must apply for the $20,000 CEBA extension with the same financial institution. Those who’ve never applied for the CEBA before can apply with their business’s primary financial institution.
In order to apply, you’ll need:
It is important to note that the $20,000 may not be available amongst all participating financial institutions. In such cases, you’ll have to wait till it becomes available to apply.
Businesses who pay back the loan by December 31, 2022, will have part of their loan forgiven. With the $20,000 extension, businesses can now be forgiven for up to $20,000 or 33% of their loan. The first 40,000 borrowed is eligible for a 25% loan forgiveness and the remaining $20,000 is eligible for 50%. Businesses who are unable to pay back the loan amount by December 31, 2022, will then be charged 5% per annum interest until December 31, 2025, when the full principal is due.
2020 has been a financially difficult year for many Canadians. Many businesses both big and small have already closed due to the impact of COVID-19. In fact, according to Statistic Canada, in April of 2020, 88,187 businesses closed. Thankfully, the Government of Canada has provided financial relief through programs like the CEBA. If your revenue is down due to COVID-19, try applying for the CEBA.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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